The Reserve Bank on Wednesday said it imposed a fine of about Rs 5.6 lakh on State Bank of India (SBI) for violation of currency chest norms.

“The Reserve Bank of India has imposed a penalty of Rs 5,62,555 on July 12,2013 on SBI for violation of the terms of agreement with RBI for opening and maintaining currency chests,” the central bank said in a statement.

The penalty was levied in connection with deficiencies and lapses in the operation and maintenance of the currency chest at the Secunderabad branch of SBI,it said.

The penal action by RBI was taken after an online portal alleged violation of KYC norms and money laundering by banks and financial institutions.

“After considering the facts of each case…Reserve Bank came to conclusion that some of the violations were substantiated and warranted imposition of monetary penalty…”,the central bank had said in a statement.

Cobrapost alleged that the financial sector entities had offered to open bank accounts and lockers for customers without following KYC norms,convert their black money into white and obtain fictitious PAN cards.

Those named in the expose include SBI,LIC,Punjab National Bank,Bank of Baroda,Canara Bank,Reliance Life,Tata AIA,Yes Bank,Indian Bank,Indian Overseas Bank,IDBI Bank,Oriental Bank of Commerce,Dena Bank,Corporation Bank,Allahabad Bank,Central Bank of India,Dhanlaxmi Bank,Federal Bank,DCB Bank and Birla Sun Life.